By Tali Rackner
Minneapolis, March 5 – Sistema PJSFC priced RUB 15 billion of series 001P-08 exchange-traded bonds with a 10-year maturity at an initial coupon of 9¼%, according to a company announcement.
The deal came at the tight end of talk for a coupon of 9¼% to 9½%, or a yield to put of 9.46% to 9.73%.
The 9¼% coupon rate applies to the first three coupons, each payable for a period of 182 days.
Bondholders have a put option after one and a half years.
Gazprombank, VTB Capital, Sberbank CIB and Binbank were lead managers for the issue with Gazprombank as placement agent.
“The successful placement of this new bond issue will continue to reduce the Corporation's cost of borrowing on the debt markets, as well as lengthen debt repayment terms,” senior vice president and chief financial officer Vsevolod Rozanov said in the announcement.
“Over the course of next six months Sistema will be retiring a number of FX and RUB-denominated liabilities, including redeeming exchange-traded bonds with a higher coupon rate. The transaction we are announcing today will allow us to optimise the structure of our liabilities and will increase Sistema's financial flexibility.”
Sistema is a Moscow-based diversified holding company.
| Issuer: | Sistema PJSFC
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| Issue: | Series 001P-08 exchange-traded bonds
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| Amount: | RUB 15 billion
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| Maturity: | 10 years
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| Coupon: | 9¼% for first three 182-day periods
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| Put: | After 1½ years
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| Lead managers: | Gazprombank (placement agent), VTB Capital, Sberbank CIB and Binbank
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| Co-managers: | MTS Bank and East West United Bank SA
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| Announcement date: | March 2
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| Settlement date: | March 7
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